Which of the Following Explains Why Organizations Use Pay Grades

question 106

Multiple Choice

Which of the following explains why organizations use pay grades while establishing a pay structure?

• A)to ensure against pay differentials based on sex or race
• B)to compare similar jobs across a variety of organizations
• C)to develop a pay structure that is based on market rates
• D)to group individual jobs of about the same job worth

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Definitions:

Discount Rate

The rate at which future cash flows are discounted to determine their current value.

Salvage Value

The calculated final value of an asset at the conclusion of its operational period.

Simple Rate of Return

A metric that calculates the percentage of profit or loss on an investment relative to its initial cost.

Operating Expenses

Regular expenses incurred in the day-to-day functioning of a business, excluding the cost of goods sold.